How to forecast your bank account balance

Forecasting your bank balance means projecting what your account will hold on a future date, based on the money you expect to come in and go out between now and then. Done well, it answers the question that matters most: will I have enough to cover everything before my next paycheck? This guide explains the method, and how TallyMint does it for you automatically.

What a balance forecast actually is

A balance forecast starts with your current balance and walks it forward day by day. For each upcoming day, you add expected income (paychecks, deposits) and subtract expected expenses (rent, utilities, subscriptions, loan payments). The result is a projected balance for every day in the period, usually shown as a line that rises on paydays and steps down as bills hit.

The manual way

You can do this by hand in a spreadsheet:

This works, but it is tedious to maintain. Every time a bill amount changes, a payday shifts, or you add a new subscription, you have to update the sheet, and it is easy to forget something.

The automatic way with TallyMint

TallyMint was built around this exact problem. You enter your recurring bills and income once, with their amounts and schedules, and TallyMint projects your balance forward automatically:

Instead of rebuilding a spreadsheet every month, you glance at a chart and immediately see whether the next few weeks are comfortable or tight.

Why this is worth doing

A balance forecast turns "I think I'm okay" into "I know I'm okay until the 27th, when it gets tight." It is the difference between reacting to an overdraft and seeing it coming a month out. For anyone living between paychecks, or just trying to time a large purchase, it is the single most useful thing personal finance software can do. It is also the feature TallyMint is built around, and a big reason people pick it as a Quicken alternative they pay for once instead of every year.

Frequently asked questions

How far ahead can TallyMint forecast my balance?

TallyMint projects your balance 30, 60, or 90 days ahead and charts it day by day, using your recurring bills and income plus anything already in your register.

Can I forecast my bank balance in a spreadsheet instead?

Yes. You can list your recurring bills and income by date and walk your current balance forward day by day in a spreadsheet. It works, but it is tedious to maintain because every changed bill, shifted payday, or new subscription means updating the sheet by hand. TallyMint keeps the forecast current for you.

Does the forecast update automatically when bills change?

Yes. You enter recurring bills and income once with their amounts and schedules, and TallyMint keeps the projection current. Recurring bills can auto-enter on their due dates so the forecast stays accurate without manual upkeep.

Does TallyMint need to connect to my bank to forecast?

No. The forecast is built from your recurring bills, income, and register, so it works even without bank sync. You can connect a bank through SimpleFIN or OFX if you want transactions to match automatically, but it is optional, and all your data stays in a single encrypted file on your PC.

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Related: What is TallyMint? · Quicken alternative · FAQ